JANUARY 2, 2023
A pedestrian walks on Wall Street near the New York Stock Exchange (NYSE) in New York, U.S., on Friday, Oct. 19, 2018. The rebound in U.S. stocks lost steam as investors assessed the latest batch of corporate earnings and simmering geopolitical tensions ahead of the weekend.
Scion Asset Management founder Michael Burry said while inflation has peaked, it is likely to pick up again in response to government stimulus.
“The US in recession by any definition,” Burry, the investor made famous by Christian Bale in the 2015 movie The Big Short, said on Twitter late Sunday. “Fed will cut and government will stimulate. And we will have another inflation spike.”
In September, Burry had warned of more pain for the stock market, saying “we have not hit bottom yet.” In the second quarter last year, his firm dumped all of its equity exposure besides one company.
Federal Reserve chair Jerome Powell last month had said the central bank is not close to ending its anti-inflation campaign after raising its benchmark rate 50 basis points.
